Application of “Deep Rock” Doctrine and Its Reference 法律(英语论文).docVIP

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Application of “Deep Rock” Doctrine and Its Reference 法律(英语论文).doc

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Application of “Deep Rock” Doctrine and Its Reference 法律(英语论文)

Application of “Deep Rock” Doctrine and Its Reference Abstract: With the deepening of the economic globalization, corporation plays a more and more important role in the world. Corporation as a great invention owns an independent personality, which brings us booming economy. But once abused intentionally, it will degenerate into an instrument to defraud the creditors or the public. In order to decrease its negative effects and sustain the booming market, “Deep Rock” doctrine as well as the Disregarding of the Corporate Entity, is firstly used in the Anglo-American legal families to regulate the corporation, although China accepted the institution of disregarding of the corporate entity in the new Company Law of the Peoples Republic of China, “Deep Rock” doctrine is still neither embraced in it or in the newly enacted Law of the People’s Republic of China on Enterprise Bankruptcy. This article especially presses on the comparison between the tow foresaid doctrines and aims to give the practical method to apply it in China.Key words: “Deep Rock” doctrine; Disregarding of the Corporate Entity 1Introduction of “Deep Rock” doctrine Corporation is the product of the mature economy. Once born, this great invention shows its amazing power in the development of market and soon becomes the engine of the economy. All its advantages can be attributed to its two footstones—independent personality and limited liability, however, every coin has two sides; every business company is organized and carried on primarily for the profits of the shareholders which conflicts the public interest, and its merits also can be perverted as an instrument for approving the evils which impair the interests of the creditors and the public. In the developed countries, especially in the U.S.A., the dilemma proved itself more and more obviously. Therefore, the Disregarding of the Corporate Entity was confirmed by a series of judgment, subsequently some important principles and doctrines developed